Fold Holdings (NASDAQ:FLD) saw bitcoin-market pressure in 1Q26, with revenue down 21.1% year over year to $5.6M as transaction volume fell 32% to $172M. Verified accounts neared 85K with about 2K net adds.
Net loss was $(29.2)M and adjusted EBITDA $(5.8)M, with GAAP results impacted by bitcoin treasury fair value and financing items. Operating expenses declined 19% to $13.4M. Management highlights a shift toward platform-led monetization, driven by credit card growth, new products, and capital structure simplification.
Revenue declined 21.1% year over year to $5.6M in 1Q26
Transaction volume fell 32% year over year to $172M
Net loss was $(29.2)M in 1Q26
Adjusted EBITDA was $(5.8)M, reflecting continued losses
News Market Reaction – FLD
-7.19%
4 alerts
-7.19%News Effect
-$6MValuation Impact
$71.16MMarket Cap
0.3xRel. Volume
On the day this news was published, FLD declined 7.19%, reflecting a notable negative market reaction.
Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility.
This price movement removed approximately $6M from the company's valuation, bringing the market cap to $71.16M at that time.
The stock moved -7.2% in the session following this news. A negative reaction despite Stonegate’s re...
Analysis
The stock moved -7.2% in the session following this news. A negative reaction despite Stonegate’s reaffirmed thesis would fit a pattern where updates around earnings and bitcoin-linked activity coincided with declines, such as the -4.73% move after Q1 2026 results and other recent drops following strategic announcements. The quarter featured a 21.1% revenue decline and continued losses, and bitcoin-driven volatility and capital structure considerations could continue to shape sentiment.
Key Figures
Q1 2026 revenue:$5.6MRevenue decline:21.1% YoYTransaction volume:$172M+5 more
8 metrics
Q1 2026 revenue$5.6M1Q26; down 21.1% year-over-year
Revenue decline21.1% YoY1Q26 net revenue change vs prior year
Transaction volume$172M1Q26 TPV; down 32% year-over-year
TPV decline32% YoY1Q26 transaction volume change vs prior year
Net loss$(29.2)M1Q26 GAAP net loss impacted by bitcoin fair value and financing
Reported FY25 growth, bitcoin treasury, and retirement of convertible notes.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Pattern Detected
Recent fundamental and strategic updates have often been followed by share price declines, even when growth metrics were positive.
Recent Company History
Over the last six months, Fold reported FY2025 revenue of $31.8M with $960M in transaction volume and then Q1 2026 revenue of $5.6M, down 21.1% year-over-year and TPV down 32%. Stonegate’s Q4/FY25 and this 1Q26 update both emphasized platform expansion, credit card and business offerings, and a sizable bitcoin treasury, while filings highlighted capital structure simplification. Historically, news on earnings and product launches around bitcoin-linked activity has coincided with negative 24-hour price reactions.
Regulatory & Risk Context
Short Interest: 3.88%
Short Interest
3.88% of shares outstanding
as of 2026-05-29Days to cover: 3.27
Key Terms
adj. EBITDA, GAAP, stock-based compensation, convertible notes, +1 more
5 terms
adj. EBITDAfinancial
"Net loss was $(29.2)M and adj. EBITDA was $(5.8)M..."
Adjusted EBITDA is a company’s reported earnings before interest, taxes, depreciation and amortization after removing one-time, unusual or non-operational items so the number reflects recurring cash-profit from the core business. Investors use it like a cleaned-up snapshot of operating performance — similar to comparing month-to-month household spending after excluding a one-off emergency expense — to judge trend and valuation, though it should be checked alongside other measures.
GAAPfinancial
"...though GAAP results were affected by bitcoin treasury fair value changes..."
GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.
Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.
convertible notesfinancial
"Capital structure simplification improves strategic flexibility. Extinguishing the convertible notes..."
Convertible notes are a type of short-term loan that a company receives from investors, which can later be turned into company shares instead of being paid back in cash. They matter to investors because they offer a way to support a company early on while giving the potential to own a stake in its success if the company grows and later raises more funding.
bitcoin treasuryfinancial
"...while retaining bitcoin treasury exposure, strengthens Fold's ability to scale..."
A bitcoin treasury is a collection of bitcoin holdings owned by a company or organization, similar to how a savings account stores money. It represents a strategic reserve of digital currency that can be used for investments, operational costs, or future growth. For investors, a bitcoin treasury can signal financial strength or a company's confidence in cryptocurrencies as part of its long-term plans.
Dallas, Texas--(Newsfile Corp. - May 15, 2026) - Fold Holdings Inc. (NASDAQ: FLD): Stonegate Capital Partners Updates Coverage on Folding Holdings Inc. (NASDAQ: FLD). Fold's 1Q26 reflected bitcoin-market-driven pressure on activity, but the quarter did not change the core thesis; it shifted the FY26 focus toward conversion and scaling across products now in market. Revenue declined 21.1% y/y to $5.6M as transaction volume fell 32% y/y to $172M, while verified accounts approached 85K with close to 2K net adds. Net loss was $(29.2)M and adj. EBITDA was $(5.8)M, though GAAP results were affected by bitcoin treasury fair value changes and financing-related items. Operating expenses declined 19% y/y to $13.4M, supported by lower direct costs, lower stock-based compensation, and lower professional fees. Management noted February marked the bottom across most core KPIs, with early improvement as bitcoin recovered. We view 1Q26 as market driven pressure in transaction-linked activity, while Fold's broader platform strategy moved closer to commercial validation.
To view the full announcement, including downloadable images, bios, and more, click here.
Key Takeaways:
1Q26 advanced Fold's transition toward platform-led monetization. Account growth, opex discipline, and concurrent product launches support a broader revenue model beyond transaction activity.
Credit card execution is the primary FY26 catalyst. With 1,000+ cards live and an ~80K waitlist, cohort spend, engagement, credit performance, and funding capacity will drive the setup.
Capital structure simplification improves strategic flexibility. Extinguishing the convertible notes, while retaining bitcoin treasury exposure, strengthens Fold's ability to scale credit, gift card, and business channels.
Click image above to view full announcement.
About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.
How did Fold Holdings (NASDAQ:FLD) perform in 1Q26?
Fold reported lower activity in 1Q26, with revenue down 21.1% year over year to $5.6M. According to the company, bitcoin-market conditions reduced transaction volume, while operating expenses declined 19% and management shifted focus toward platform-led monetization and scaling existing products.
What were Fold Holdings’ key financial metrics for 1Q26 (FLD)?
Fold posted 1Q26 revenue of $5.6M, a 21.1% year-over-year decline, and a net loss of $(29.2)M. According to the company, adjusted EBITDA was $(5.8)M, and operating expenses decreased 19% year over year to $13.4M, reflecting cost discipline.
How did bitcoin markets impact Fold Holdings’ 1Q26 results (FLD)?
Bitcoin-market pressure reduced Fold’s transaction-linked activity in 1Q26, driving a 32% year-over-year decline in transaction volume to $172M. According to the company, GAAP results were also affected by bitcoin treasury fair value changes, though management noted improvement as bitcoin later recovered.
What is driving Fold Holdings’ shift toward platform-led monetization in FY26?
Fold is emphasizing platform-led monetization beyond transactions, supported by account growth, operating expense discipline, and concurrent product launches. According to the company, this broader revenue model focuses on scaling credit card, gift card, and business channels throughout FY26.
Why is the Fold Holdings credit card important for FY26 (FLD)?
Credit card execution is described as Fold’s primary catalyst for FY26, with 1,000+ cards live and an ~80K waitlist. According to the company, cohort spend, engagement, credit performance, and funding capacity will shape the program’s contribution to growth.
How did Fold Holdings’ user base change in 1Q26?
Fold’s verified accounts approached 85K in 1Q26, with close to 2K net adds during the quarter. According to the company, February marked a bottom in many core KPIs, with early improvement following a recovery in bitcoin prices.
What capital structure changes did Fold Holdings make in 1Q26?
Fold simplified its capital structure by extinguishing convertible notes while keeping bitcoin treasury exposure. According to the company, this change is intended to improve strategic flexibility and support scaling of credit card, gift card, and business-focused channels.
